TUCSON GEM SHOW SPECIALS: As usual, AGTA Booth 1219 will be the center of Emerald Activity. This year there will be an abundance of finely formed emerald crystals. The 20 - 50 carat crystals from the main page are shown here standing in the awesome presence of the 472 carat Itoco Emerald, to give a sense of perspective.

The Tucson exhibit will also have emeralds on matrix, well-selected cut emeralds, calibrated commercial goods and other gem & mineral rarities. The book Emeralds, A Passionate Guide will also be on sale.

Also at Tucson: Pre-Columbian bead made of the finest emerald material. Found in Malagama near the San Agustin archaeological site in Cauca Colombia, this piece,

depicting a monkey, has indications of being fashioned 600 - 1000 years ago.

February 2011 - Emeralds Break Price Barrier

Recent emerald sales have set new price categories for fine emeralds, more than doubling the previous high-end price ceiling. The ICA magazine devoted to colored stones, InColor, edited by Jean Claude Michelou, reports in its winter issue that a 12.88 carat emerald cushion cut sold for over $68,000 per carat! It used to be that the finest emeralds sold for a maximum of $40,000 per carat. Now, Christie's has reported, through a press release from the stone’s seller, Muzo International, that a 9 carat emerald cut has sold for close to $90,000 per carat.

Recognition of Rarity

This sale shows not only the new recognition of the rarity of a very fine emerald with no clarity enhancement, but also reveals a new breed of international gem buyer. With stocks and real estate no longer supplying the returns or excitement of previous years, big money is coming to recognize the undervalued and collectable attraction of fine gems. Fine world class mineral specimens have also become a new asset category for the wealthy collector. All of this means that new money, money displaced from the older traditional investments, is coming into the gem and mineral world, first at the high end but soon to affect prices of all categories.

Dealer Ron Ringsrud recalls the last time a price barrier was broken. In 1985 a 12 carat emerald with a spectacular combination of color and transparency was brought to Los Angeles by emerald trader Guillermo Ortiz. The stone sold for $14,000 per carat and was the first emerald to break the $10,000 per carat barrier. For the next two decades only a very few fine stones sold for more than $10,000 per carat. Then, in 2006 Ringsrud commented in his “Emerald News” newsletter that stones above that price per carat were becoming quite common, rather than being special. With this month’s sales it is clear that we are entering a new era of stratospheric emerald prices. A gorgious 19 carat emerald owned by 4G’s of New York was “only” $20,000 per carat a year ago at the Basel Show in Switzerland. Such a stone would likely go for more in today’s market. While this says much about the emerald’s fineness and rarity it must also be taken into account that it is also a reflection of the new weakness of the US Dollar as gold, metals, commodities and even some foods are rapidly going up in price.

Mineral Specimens

Bill Larson of Pala International has pointed out the same phenomenon in the fine mineral specimen market. Several recent large sales point toward an increasing demand for the best of the best, of which the rarity is unquestioned. The unique and lovely Yamile emerald pictured here, resides in that upper echelon of rare pieces.

To the Mines!

Against the advice of almost all of their friends, Barry and Beth Kitt, collectors from the Dallas, Texas area, decided to come and visit Colombia last month. After experiencing the culture and people of Cartagena, they came to Bogotá, where a helicopter was waiting to take them to the once-forbidden (but now quite welcoming) Coscuez mine deep in the Muzo emerald mining region. While the late summer was a time of scarcity for emeralds, some production from Coscuez, Chivor and La Pita helped to satisfy buyers this winter in Colombia. Muzo International, operating in Colombia as Minerales Texas Colombia, continues to take a large share of emerald production directly to their facilities. This has put a new pressure on the mines to produce more and has also affected prices. Chivor mine, usually sporadic in its output, has lately kept buyers involved with recent productions of richly saturated, slightly bluish Green material in the fine end of the quality spectrum.

As a collector of fine mineral specimens, Barry Kitt explained that the world of minerals is now being looked at by high-end collectors as a new asset category. This outcome is simply a result of the rarity of the material and the year-by-year appreciation that these pieces have shown. This year’s Westward Look fine mineral show at Tucson - the premier rare and fine mineral show - promises to be exciting with record sales most certainly looming.

And speaking of "looming," by 4:30PM the clouds in the background were looming all around us and we had to make a hasty exit from the warm semi-tropical atmosphere of Coscuez. Maecha the pilot was never more focused as he threaded a way between clouds, some quite dark, to Villeta, a town to the south, and then finally Bogotá.

The return trip to Bogotá requires flying over 12,000 feet to clear the

Andes Mountain passes between Coscuez and the high plains. That

requires clear weather, or at least a break in the clouds.

Pendants Breaking Barriers

These astrological pendants have, thanks to CAD-CAM configuration, broken the barriers of design. Each piece has remarkable detail, with Sanskrit verses ornamenting the sides as well as finely shaped granulation patterns.

Those of you that have read my book Emeralds, A Passionate Guide will already know that Chapter 2 is a long chapter, devoted to the history of two great empires, the Empire of Spain and that of the Mogul Emperors of india. Both acquired immense power and expansion in the early 1500's and both shrank from world power in the mid-1800's - and emeralds united them both. The chapter reveals how it was the Spanish power that opened the Southamerican source of these exotic green gems and how it was the rich Mogul emperors that purchased them, amassing priceless collections.

Imagine my surprise and delight when I discovered this year that another scholar, one outside the gem industry, has just published a fascinating parallel research on the Colombian emerald in world trade from the sixteenth century to the present. Read here the excellent synopsis from Yale University Press:

Among the magnificent gems and jewels left behind by the great Islamic empires, emeralds stand out for their size and prominence. For the Mughals, Ottomans, and Safavids green was—as it remains for all Muslims—the color of Paradise, reserved for the Prophet Muhammad and his descendants. Tapping a wide range of sources, Kris Lane traces the complex web of global trading networks that funneled emeralds from backland South America to populous Asian capitals between the sixteenth and the eighteenth centuries. Lane reveals the bloody conquest wars and forced labor regimes that accompanied their production. It is a story of trade, but also of transformations—how members of profoundly different societies at opposite ends of the globe assigned value to a few thousand pounds of imperfectly shiny green rocks.

Author Kris Lane is a professor of Latinamerican History at the College of William and Mary and he has researched this book thoroughly by visiting the classic libraries of Europe, especially Madrid, as well as those of the Colombian capital in Bogotá and other cities.

Colored stone dealers and collectors will delight in some of the insights that this research uncovered. Truly forgotten details of the colored stone trade are some of the finds in this book!

Notice the tag on the lower right: it gives the origin of the emerald specimen as Peru! Of course, in 1533 Francisco Pizarro conquered the Inca capital (in what is now Peru) and sent several boxes of large emeralds to Spain along with gold. The emeralds impressed King Charles I so much that Pizarro was given the order to discover the Peruvian mine that these emeralds came from. Finally in 1560 it was in present-day Colombian territory, not Peru, where the source of these fine large emeralds was discovered.

Because the Viceroyalty of Peru (which included all Southamerican Spanish colonies) existed under Spain for over 280 years, one can imagine how the name Peru could have a meaning broader than its geographical boundaries. Peru, Colombia and many other Southamerican countries did not achieve independence until the early 1800's.

So this erroneous tag can now be understood in those terms. Below is a page taken from a scholarly book called Mineralogy written in Oxford, England in 1809 by J. M. Kidd. Note the reference to Peru:

This beautiful specimen is now at the University of Rome, Mineralogical Museum; Curator - Michele Macri. The museum employees do not remember when the piece was acquired; one said it may have come from a collection in Austria.

An Emerald of Importance in Colombia Inspires a Painting

Sitting for a portrait is something reserved for the rich and famous. The Itoco Emerald, a gem quality, perfectly hexagonal rough emerald from the mines in Colombia, qualifies in that category. It was recently commemorated in a painting by Colombian artist Omar Perez. The painting, shows Muisca Indians from the Muzo mining region sitting around a fire and invoking the unmistakable crystal form of this famous gem. Colombia’s emerald mines are the source of the world’s finest emeralds and because this one is gem quality its value is in the millions. After the link, there is a detailed discussion of this piece.

In this image,
the owner of the Itoco Emerald, Hernando Sanchez, stands with a painting of it. The painting took six months to complete. The Itoco emerald, a 472 carat gem quality emerald, is depicted among symbols relating to the indigenous roots of the emerald mining region in Boyacá, Colombia.

Emerald buyers in Bogotá habitually take a break when it rains. The dark clouds ruin the daylight that they are accustomed to buying with. However, weeks of mid-July rain in torrential levels has made buying (and selling) difficult – instead of raining for an hour, it has been raining or dark for almost all of the days, causing goods to be put away and buyers to feel depressed.

Another hindrance that can close an office in Colombia: World Cup soccer playoffs - no need to elaborate on that point. A third influence has been that the recent national elections have limited access to dynamite by the emerald mines, causing a slowdown in production (dynamite can get into the wrong hands and make [loud] political statements). To top it off, the fourth and strongest influence is the excessive control of merchandise that Muzo International has – causing shortages in the traditional emerald markets in downtown Bogotá. This new company facets emeralds in Bogotá but they get shipped overseas without ever passing through the downtown emerald market. These four factors have made July a bad buying month for emeralds. Let’s hope it is a temporary situation and that things will improve over the next month or so. [editor's note: Muzo Iinternational has opened a selling window in Bogotá and are beginnig to sell in the traditional market]. If the supplies from the mines do not increase, and if the shortage continues for the traditional downtown dealers and exporters, it could cause people to leave the business. Some smaller ones, and a number of brokers, have already left. Among some of the larger exporters, a few have already quietly diversified their capital into other businesses as a hedge against this possibility.

Notice that the global recession was not mentioned in the Quadruple Whammy; world demand for emerald has been steady, strong and seems to be increasing. Even in the US, which has been slow, emerald calls from jewelers to wholesalers have increased. Reports from the recent JCK Las Vegas show were also positive for emeralds. Although the recession’s side-effects will still be seen, everything looks green for emeralds. Emerald prices have risen - not due to demand but simply due to the fact that the US Dollar has weakened by 10% against the Colombian Peso.

The strong demand for emeralds and the current shortage has caused small and mid-sized emerald mine operators to actively seek investors. Within the triangle formed by the three largest emerald mines of Muzo, Coscuez and La Pita, there are many small mines and prospect digs. There are also areas legally staked and claimed but are waiting for the money to invest into machinery for digging and exploitation. All of these small operations have stepped up (or tried to step up) to fulfill the current demand. The owners are showing up in downtown Bogotá to seek investors. Opportunities exist now that will not go unnoticed. The Texma Group, owners of Muzo International may have been the first but certainly are not the only large foreign investors looking at these opportunities. A Canadian and a European firm have recently sent representatives to the mining area to report on prospects.

World demand for emeralds is not the only thing Colombia is enjoying. The country is, according to a July 9 article in El Tiempo, on the cusp of a mineral and petroleum bonanza that will triple exports in the next ten years. This announcement from the government comes with a new disciplined bill in Congress called “Regla Fiscal” which was designed to avoid the enormous mistakes that Venezuela and some African countries have made from misuse of their wealth. Colombia’s non-petroleum exports are substantial and it is recognized that they need to be protected along with the stability of the currency.

La Paz workings, Coscuez mine. By going deeper, now at 105 meters below the original tunnel, miners have found promising emerald locations in the past month.

Festive Gathering in Bogotá House

Bogotá, Colombia: After aging nine years in the wine cellar of a Spanish Colonial villa in Bogotá, Colombia’s emerald district, a bottle of Windsor Chardonnay was ceremoniously opened to the applause of over 30 already-inebriated gemologists, gem dealers, their wives and girlfriends. The bottle was originally presented graciously by San Francisco’s own Golden Gate Chapter of the GIA Alumni Association to emerald trader Ron Ringsrud for a lecture that he presented to their 2002 Chapter meeting. “I don’t drink that much but I saved that bottle for a worthy occasion."

The bottle is a special edition California wine whose label was printed with a dedication from the Golden Gate Alumni group. Susan Martinez, then co-president with Starla Turner, said that they made up a small number of those wines from Sonoma to present to lecturers and guests of the association.

"We felt it tasted a bit 'vinegar-y' and left the bottle in the kitchen. Later, however, Gloria Martinez (in a charmingly inebriated slur) told us that it was the best wine she ever tasted!" The party went on, and we welcomed international visitors from the Hotel Casa Deco, as well as Julie Lee, Exhibitions Director for the Bowers Museum of Cultural History, who was in town to set up an exchange with the Gold Museum (Museo del Oro).

Finally, between songs, a knock at the door brought in two Chilean ladies who couldn't resist the Gaita sounds and rhythms - they basically invited themselves in. Eager to return our generosity, Cristina pulled out a charanga (small Chilean guitar) and played a few more songs to add to the festivity.

Geneva-based Muzo International is actively marketing emeralds from their new partnership with Muzo-based Victor Carranza, known as the Czar of Emeralds. Here is a press release from their organization:

Muzo is the exclusive marketing and trading arm of TEXMA, the company that launched in 2009 a new global operation which is mining, cutting and polishing all new production of Colombian Emeralds from the historical Muzo mine, in Colombia.

Muzo International is establishing a comprehensive global trading program, connecting directly the goods mined, cut and polished by TEXMA with Emerald buyers around the world. The program will benefit from the establishment by TEXMA of a certification program that will guarantee quality and provenance, respecting social, environmental and ethical Standards.

Muzo sets the example in the world of emeralds trading by its mine to market philosophy; the quality of the stones produced; the certification methodology that guarantees both the quality, origin and ethical production as well as its corporate social responsibility program.

Our cutting and polishing facilities are located in Bogotà. The most experienced and talented emerald cutters and polishers exclusively work on Muzo mines rough emeralds.

ENHANCEMENTS

Our zero resin/polymer policy ensures that only non-permanent oils are used to treat the stones, when necessary. This dispels concerns both with regards to the disclosure of treatments as well as to potentially detrimental fillers. Muzo International web site:>>

JCK Las Vegas Show in Lurid Exposé!!
Harper's Magazine Reveals All!
OK, my headline was a bit exaggerated but the story in Harper's starts with a diamond dealer in staying in the Rio for the JCK Show getting robbed by a prostitute that he invited up to his room! Now that's lurid. Told by a diamond dealer, he gives a lengthy, gossip laden description of the show that we all love (and hate). You should read it on your way to the show! Written by Clancy Martin, it is an insider’s look at other insiders. His story was that in 1995, as a diamond dealer staying at the Rio for the show, he and his partner were robbed by the two prostitutes that they brought up to their room. He was drunk and “must have let the prostitute see the room safe combination over my shoulder.” His eventual bankruptcy led to him becoming a philosophy professor (I remember suffering a business loss and getting quite philosophical too!).

His stories are fascinating and his experience is evident in his descriptions. For example, his recognition of the fact that as jewelry and gem wholesalers, our merchndise is so cash-intensive that many dealers are often are on the verge of bankruptcy. Another insight: “Envy is another Vegas emotion.” This is just like the "Basel Effect" mentioned in the Gary Roskin report, of the effect experienced by many dealers at this prestigious high-end show: seeing so many ultra fine expensive gems and jewelry pieces makes one feel insigificant and envious. The exposé really doesn't expose much - just talk about markups and deal-making. This is recommended reading though, Martin has been through it all and has vivid perceptions and insight to share with us all.

The Casa Deco Hotel, just 4 blocks from Colombia's famous emerald district in the historic center of the capital city Santa Fe de Bogota, has just opened its doors. Built by Oscar Baquero, Colombian emerald exporter, and Paolo Magnani, Italian emerald dealer, the design reflects a colorful and artistic theme, worthy of its name - Casa Deco.

Emeralds, A Passionate Guide receives a"thumbs up" review by screenwriter Diane Lake. This review is newsworthy in that it suggests that the book has appeal even outside of the normal boundaries of gem and jewelry publications.

Diane Lake has been a screenwriter since 1993. She has been commissioned to write films for Columbia, Disney, Miramax and Paramount. Diane's film, Frida, opened the Venice Film Festival and was named one of the 10 Best Films of 2002. Frida was also nominated for 6 Academy Awards in 2003.

Record breaking emerald on display at exhibit in the Bowers Museum in Santa Ana - At the opening of the Fernando Botero (a Colombian artist and sculptor) Art Exhibition, the fabulous Itoco Emerald went on display in its own special room . More here >>>

<> Gemologist Richard Hughes eloquently explains where gemology is losing it. "Gemologists are privileged to work with some of the most stunning and romantic objects on the planet – singular marvels of extraordinary beauty and wonder. And yet all we do is analyze. Break it down. Torture beauty until the extraordinary is reduced to an entirely ordinary set of chemicals, numbers and digits, abstractions with no relation to the reasons why people purchase precious stones. At this point, we have broken the butterfly upon the wheel." Hughes gets an honorary free copy of Emeralds, A Passionate Guide (Delivered two months ago now...) for raising the flag of passion and feeling in the often stuffy and overly analytical world of gemology. In my book (Chapters 11, 14, 22 and 23) the same flag is raised and waved. Que viva la Passión! Thank you RH.

Charitable activities in Boyaca: After distributing rocket stoves for two years it became obvious that more needed to be done. In the emerald mining region there are houses constructed with earth that are 150 years old. These old skills have been forgotten in the last decades. The need for dwellings is growing fast as the region gets new highways and infastructure. A school for alternative construction is now being planned. The house pictured above is made from pressed earth.

This house in Guasca, near Bogotá is owned by José Antonio and Cristina Carbonel. Tapia pisada or pressed earth is 60% cheaper than conventional frame or cement construction - the raw material, earth, is free. The artisan, Oliverio Roa, added color to the earth and left it partially exposed. He will be teaching his skills in the emerald mining region next year. The same schools created to teach alternative construction methods will also make and distribute rocket stoves.

Journalist and photographer Frederique Letellier exhibits photography in new gallery in Geneva, Switzerland. After her first visit to the Muzo emerald mine, Frederique Letellier's photographs excite the Swiss, always eager for news and images from the wild and exotic "new world."

Highlites from the December trip to Colombia
On a visit to the Muzo emerald mining region we learned that the La Pita mine had just produced a wealth of emeralds: over two million dollars worth! Later that week I was fortunate to see the production on the desk of a friend.

Approximate weight is 1700 carats and all of the stones are fine. Two were quickly chosen for their small size and were cut to stones in the $5000 to 10,000 dollar per carat range! During the cutting, Richard Wise and I were able to hear stories from Master emerald cutter and facet artist Adolfo Argotty.

Consorcio mine in the La Pita mining area - this photo was taken 400 meters in and 140 meters down.

RR speaks with the Mayor of Maripí about combining an agriculture school with a school for alternative construction that would create housing and employment for many families in the region. The region's mine owners and the emerald exporting association in Bogotá want to promote such programs. The emerald mines provide good employment but it is not always steady. As the population of the area increases, more houses need to be built. The Mayor, Sextosilberio Reyes, is concerned about these issues as well as the rising cost of cement in the last two years. More information about this project will be reported later.

On August 5th, the directors of FEDESMERALDAS, the umbrella organization that oversees not only the exporters but also the miners and brokers of Colombian emeralds, voted to install Oscar Manuel Baquero (seated, in the white shirt) as the new President. Oscar Manuel, 32, had served three years as the head of ACODES, the exporters association, and demonstrated his prowess and vision. The son of exporter and connoisseur, Oscar Baquero, Oscar Manuel has a plan to implement the pursuit of Fair Trade standards, create better name recognition of Colombian emeralds in the world, and to develop and refine the new gemological laboratory in Bogotá. Taking his place in the directorship of ACODES is Fernando Angarita, 29 (not pictured), son of exporter Guillermo Angarita.

Seated next to him in the blue shirt is 24-year old Warne 'Memo' Chitty, GG and FGA. Chitty is currently studying advanced gemological instrumentation and techniques in London and will join the other young lions next year in Bogotá.

This influx of young blood in the top organizational levels of the emerald industry in Colombia is very good news for all involved, from the professional buyer or exporter to the consumer. Hearty congradulations to Oscar Manuel, Fernando and Warne.

Ronald Ringsrud publishes an article about a trip
to the historic Peñas Blancas mine in Boyacá,
Colombia. The February issue of IDEX Magazine - see the
full text
here:

La Pita Mine, 2004

News! RR is quoted extensively in the
prestigious Robb Report!!

I am happy the say the above photo (in the center) came
out. It is showing a 38 calibre Police Special handgun with
the (Nephrite) Jade handle, passport, bullets and emeralds.
I took the photo after the magazine interviewed me and
submitted it, never having published my photography in a
national magazine before. It ended up being the Lead Photo
for the article! The necklace photo is a Van Pelt image of a
$600,000 piece. The large rough emerald below the gun is 443
carats from Coscuez mine - the finest example to come out in
years.